New York City's mayor plans 'soda tax'

[T_i_B]

Source: Daily Telegraph (UK)

Mr Bloomberg, whose administration has already targeted unhealthy trans fats in food and banned smoking from many public areas, has urged New York state legislators to impose a tax of a cent per ounce on the sugary drinks.

He described the soda tax - equivalent to an extra eight pence on a can - as "a fix that just makes sense", saving lives and cutting rising health care costs.

"An extra 12 cents on a can of soda would raise nearly $1 billion (£663 million), allowing us to keep community health services open and teachers in the classroom," he said on his weekly radio programme on Sunday. "And, at the same time, it would help us fight a major problem plaguing our children: obesity."

David Paterson, the mayor of New York state, has already proposed a soda tax but it was dropped last year following a public outcry. Mr Bloomberg has suggested a slightly different tax, involving a direct levy on drink producers, and has astutely highlighted its financial benefits at a time when the state faces a multi-billion dollar budget shortfall.


Read more: http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7400304/New-York-Citys-mayor-plans-soda-tax.html

[RandomThoughts]

1. The concept makes sense. But there is a flaw in it.

It uses money to modify behavior, don't forget to charge people with higher incomes a higher level of tax so they have the same punitive effect on bad behavior.

I think Mr Bloomberg should be taxed a few thousand for every soda he buys, so he is under the same punitive pressure. Just trying to keep it fair.

Since it is meant to be a deterrent, the tax should be more for people with more money to have an equal effect, otherwise it is only a deterrent on those with less money, furthering the two tier system.

[Captain Hilts]

12. Price increases are effective with younger consumers. Same for tobacco. nt

[harmonicon]

19. the "flaw" is that the city isn't providing healthcare to everyone.

That's what's wrong with all of these stupid taxes. If a government - city, state, or federal - wants to tax things like soda, tobacco, and alcohol because they are bad for the health of citizenry, they should then use those taxes to take care of that health, not to fill coffers left empty because of a poorly planned and executed tax system.

[Lasher]

2. I didn't know David Paterson was the mayor of New York state.

To be honest I didn't know the State of New York even had a mayor.

[Earth_First]

13. Good catch...

Damn foreign media...

[Chemisse]

3. I like this idea

If cigarette smokers - who have much less control over their consumption than soda drinkers do - can be taxed so heavily, why not toss a small tax on unhealthy beverages?

Maybe it will modify behavior, maybe not. In the meantime, revenues are collected from people who have a choice in whether or not to pay them.

[cstanleytech]

16. I doubt it will modify anyones drinking habits other than the poor, after all people still to this

day use tobacco and its been taxed again and again.
So again, I say I doubt it will modify anyones drinking habits and imo this isn't really about that but rather about the government trying to improve its cash flow.

[Chemisse]

39. Maybe just placing a tax

And making the statement that it is not a nutritious beverage, will make some parents consider limiting what their kids can consume.

Amazing though it may seem, some people just don't pay attention to what is safe to give their children, unless there is some kind of a government statement about it.

[Ter]

4. What a POS!

Taxing the poor like me when you're a billionaire. I refuse to pay, we all should.

[PoliticalOne65]

5. When is it going to stop?

[JCMach1]

6. Government should keep its hands off the soda can

[Demit]

7. LOL! Sounds like folks are against sin taxes when their own habits start getting taxed.

You all could stop drinking soda. Instead of moaning about how poor you are and how it's not fair and you shouldn't be taxed.

[damyank913]

10. That's right-as long it was those filthy smokers...

let's tax the shit outta wine and the system will crumble overnight. How bout coffee and condoms, and while we're at it, let's levy taxes on the church!

[cstanleytech]

20. Well one difference is I havent seen any reports showing an occasional soda can cause cancer unlike

tobacco which has been shown to increase the odds of getting cancer for both to the smoker and anyone near them via 2nd hand smoke.

[Demit]

37. I have no idea what your post has to do with mine

since I didn't say anything about cigarettes. But since you replied to my post, I'll comment on yours.


Your point seems to be that sodas shouldn't be taxed because an "occasional" soda can't cause cancer.

If you're going to make an analogy between soda and tobacco, you'd have to say "...unlike an OCCASIONAL cigarette which has been shown to increase the odds of getting cancer for both the smoker and anyone near them."

And then I'd have to ask you to show me where to find THOSE reports, which presumably you have seen.

[Craftsman]

8. Note to self need to open up a beverage barn selling soda just in Jersey

[damyank913]

9. Yeah but in NJ you'd have to hire someone just to pour it.

[Craftsman]

11. Fugetaboutit, seel it by the case out of a truck ;)

[damyank913]

14. Thas right! Just think of the jobs created by hiring all those new soda police.

What has been the law enforcement impact of making tobacco the largest black market item in NYC.

[jmowreader]

27. This is a tax that will be levied at point of production, not point of sale

It's a cent per ounce, so the distributor will simply add one cent per ounce to the price of its product. With normal markups, a 20-ounce cola will go from, say, $1,50 to $1.75. And most people would just shrug and say, "oh well, the price of a Coke went up a quarter." No new jobs will be necessary--the coke machine guy or the corner store owner will just pay an extra $5 per case to the distributor and the distributor will send $4.80 to the city, retaining 20 cents per case to pay for his costs of being a government revenue collection agent.

And the thing is, it's guaranteed to make money. If you are at work and want a coke, you're not going to get on the subway and go to Newark for it. You're going to go to the vending machine in the breakroom and buy one.

Now for the real issue we need to address, and it's a big one: Why in HELL have we not taken the gift Mayor Bloomberg has given us and made the most of it? Find some cute little girl, style her so she looks sweet and innocent, and run big billboards asking "Why are the Republicans raising seven-year-old Sally's taxes?" Because kids are going to get hit hard by this.

[InkAddict]

42. Ahhhh, the new soda jerks.....n/t

[customerserviceguy]

17. Now that was funny!

I hate being treated like an invalid who can't even pump his own damn gas when I go to Jersey. But it's about 40 cents a gallon cheaper, so I deal with the wait.

[Renew Deal]

29. I just pump

Sometimes they get mad. Sometimes not. I don't care either way.

[gauguin57]

25. LOL!

that's funny.

[Renew Deal]

28. There's probably a lot of people that don't get that joke.

But I do. :rofl:

[Dorian Gray]

15. Wow... in the article:

"David Paterson, the mayor of New York state, has already proposed a soda tax...."

Proofreading needed!

As for the soda tax, I'm of mixed emotion about this. I do think it will hit the lower-income population much harder than any other. But soda is super unhealthy and should be drunk sparingly. Perhaps it will work similarly to the cigarette tax, encouraging people to give up the horrible habit. I don't know.

[customerserviceguy]

18. The reason this WON'T work

Sure, sugared soda will be priced differentially at supermarkets, where it is often purchased in multipacks. But most soda sales are impulse purchases, a single one is sold in most transactions. Will retailers charge different prices in a convenience store, a fast-food drive-thru, or a vending machine for sugared and diet sodas?

I doubt it. They'll just raise the prices of the diet sodas (and even bottled water, if it's in the machine) to the same price. No price difference - no disincentive.

[Bryn]

21. They use High Fructose Corn Syrup because it's cheaper

So tax high on HFCS then. Not natural cane sugar.

[dkhbrit]

34. OK

"So tax high on HFCS then. Not natural cane sugar."

Natural cane sugar provides the same amount of calories as HFCS. Why single out HFCS?

Orange juice contains the same amount (even more in some cases) of sugar as many sodas. Why not tax OJ?

This is purely a money making exercise and will not make even the tiniest dent in the obesity problem. Singling out the beverage industry is ridiculous - what about fast food, breads, cheese, butter? How about taxing Playsations? They keep kids indoors.

[AngryAmish]

22. of course he does

[WriteDown]

23. I want to see a pizza tax. Especially pepperoni. That stuff will kill you. nt

[LanternWaste]

35. Me too...

Me too-- as taxation is part and parcel of the price it takes to run a dynamic culture I've got no problem paying additional taxes, and since pepperoni pizza is one of my major food groups, I'll be doing my part.

[MilitarismFTL]

24. Sin tax, huh?

I'd prefer to rip tax-exempt status away from churches. It'd raise a helluva lot more money than some lousy soda tax that hurts the poor more than anyone else.

[SnowCritter]

26. Will sugar-free soda

be exempt?

Just askin'.

[Jennicut]

31. As a diabetic, If I want soda, I have to drink the sugar-free kind. But the tax doesn't bother

me. I am used to paying more for all my food. Whole grains cost more then the crappy white flour version of pasta, bread, etc.

[DumpDavisHogg]

30. That sugar-free garbage is more dangerous than regular soft drinks by far

Is the sugar-free stuff taxed too? Or is this just another government subsidy of aspartame?

[SOS]

32. Prices in NYC....

A case of Heineken in a Manhattan deli is $56.
A carton of cigarettes is $107.
The average rental price in Manhattan for a one bedroom apartment is $2,900.

And people are whining about a 12 cent tax on a Pepsi?

:eyes:

[sufrommich]

33. I don't care if they tax soda, as long as they don't tax pop.

}(

[unabelladonna]

36. where does this end?

and what's next? salt, ice cream, pasta, coffee, butter?
bloomberg is a prissy little yenta.

[Abq_Sarah]

38. This has nothing to do with

Saving lives, cutting health care costs, etc... It's just another way to jack up taxes, mostly on people who really can't afford it.

[Imajika]

40. Yup...

They pick "soda" or "junk food" because it is easier to fool the public into accepting the tax.

It's "for the children" dontcha know!

[Kurska]

41. I drink alot of soda, I'm cool with that.

It isn't healthy, I don't pretend it is, the Gov can tax whatever they like.

[christx30]

43. With an additude like that,

they will tax anything and everything under the sun. You won't be able to walk down the street or breathe without incurring some kind of tax. Is there anything that you would not support a tax on? Sunbathing? Eating pasta? Sitting in your living room watching TV?
Why should I pay more because there are people out there that can't exercise self control? This isn't just about soda. Fat taxes are on the way. Pizza is going to be the next demon that they scare us with to try to wring money out of us

[lonestarnot]

44. What bullshit. More squeeze, next it will be a rice tax.